7 Common Myths About Outsourced Bookkeeping Services
Outsourcing, including bookkeeping and other professional services, has become increasingly popular among today’s small business owners. However, whether you’ve been contemplating outsourcing for a while or it’s a new consideration, you might feel a bit hesitant, especially when it comes to your finances.
Outsourcing can sometimes be met with indifference, confusion, or even fear by many entrepreneurs, largely due to the many misunderstandings and misconceptions that exist.
But fear not! In this post, we’re going to debunk seven of the most common myths about outsourced bookkeeping services. So, let’s clear up some of those uncertainties and help you make an informed decision.
7 Common Myths About Outsourced Bookkeeping Services
- Outsourced = Overseas
- Loss Of Control
- Lack Of Affordability
- Security Concerns
- Trust Concerns
- Time Management Concerns
- Do-It-Yourself Software
- Why You Shouldn’t Pay Attention To The Above.
1. Outsourced = Overseas
If the first thing that pops into your head when you hear “outsourced” is “overseas,” you’re not alone—many people think the same. But that’s actually one of the most common misconceptions about outsourcing.
The term “outsource” simply means getting goods or services from an external source or hiring someone outside of your company to do a particular job. It doesn’t automatically mean the work has to be done by a company overseas.
In fact, onshore outsourcing right here in the United States is a thriving industry, especially in professional fields like bookkeeping. This industry provides jobs for hundreds of thousands of Americans who work in full-time positions. So, it’s not just about going abroad; it’s about finding the right expertise wherever it may be.
2. Loss Of Control
The thought of losing control over your precious business is something no entrepreneur wants to entertain. It’s a big fear for small business owners, and this myth about outsourcing can play on that fear.
But here’s the truth: when you hand over your bookkeeping to a professional service provider, you’re not losing control; you’re actually gaining a better grip on your business’s goals and financial health.
Having regular access to up-to-date and accurate financial information empowers you to make smarter business decisions. So, think of it as staying firmly in the driver’s seat of your beloved enterprise, but with a clearer view of the road ahead.
3. Lack Of Affordability
In the world of business, time is like gold dust – precious and valuable.
So, instead of thinking of outsourced bookkeeping services as just another bill to pay, consider this: the time and energy you’ll free up by having someone else handle your financial records can actually lead to big gains in other areas.
After all, you started your business because you’re great at something, right? Unless that something happens to be bookkeeping, you’ll get much more value by investing your precious time in doing what you excel at. So, let the experts handle the numbers while you focus on shining in your element.
4. Security Concerns
It’s completely natural for business owners to be concerned about the security of their financial information, especially when they’re entrusting it to an outside bookkeeping company like Hubdoc, where data is often stored in the cloud.
Here’s the deal: no data, whether it’s online, offline, or even written in a notebook, is ever 100% foolproof when it comes to security. However, reputable outsourced bookkeeping services take serious measures to protect your data using the latest technology.
In the end, the reality is that you’re just as likely to encounter a security breach within your own home or office environment as you are when working with a trusted outsourced bookkeeping expert. So, it’s all about putting your faith in professionals who prioritize your data’s safety.
5. Trust Concerns
We all tend to think that no one could possibly care about our business as much as we do, right? But guess what, that feeling goes both ways when it comes to the professionals providing outsourced help.
Many of these folks are business owners just like you, and they’re just as dedicated to delivering top-notch client service. They’ve got your back!
One cool thing about these professional contractors is that they bring a fresh, objective perspective. That means they’re more likely to spot any unusual stuff happening in your business and can suggest better ways to manage your finances.
Now, when it comes to weighing the pros and cons, you might want to check out our free guide: “9 Benefits Of Small Business Financial Reporting.” It’ll show you just how valuable having experts handle your books can be. Trust me; it’s worth a read!
6. Time Management Concerns
Professional outsourced bookkeepers are here to make your life easier by handling the heavy lifting of your bookkeeping tasks. This means you and your employees can reclaim valuable time.
Now, most outsourced bookkeeping services operate in the digital realm. They often use cloud-based solutions, which make it super convenient to store and share financial data and important information between you and the service provider.
And here’s the cool part: today’s technology has made outsourcing really user-friendly. You don’t need to be a tech whiz to do it with confidence. Plus, it gives you the flexibility to use these services as and when you need them, without the hassle of maintaining in-house staff. It’s all about making your business run smoother and more efficiently.
7. Do-It-Yourself Software
There’s no doubt that tools like QuickBooks are fantastic and pretty user-friendly. But here’s the thing: just having a great bookkeeping solution doesn’t automatically make you a pro at using it to its fullest potential.
Believe it or not, many small business owners don’t tap into all the powerful features these accounting programs offer. And for those who do, they often find themselves spending way too much time doing bookkeeping when they could be focused on other aspects of their business.
Plus, as your business grows, your finances tend to get more complicated. Instead of trying to figure it all out on your own, why not lean on the expertise of professionals who not only have the time but also the advanced skills needed to keep your finances in tip-top shape? It’s a smart move that lets you stay in control without drowning in spreadsheets and numbers.
Why You Shouldn't Pay Attention To The Above
As we team up with new clients, we keep discovering special perks that come with outsourcing your bookkeeping.
Never Absent
When you opt for an outsourced solution, your small business bookkeeping gets the attention it needs, no matter what. There are no sick days, holidays, or vacation days when you go the outsourcing route.
Higher Level Employee
Skilled outsourced bookkeeping experts earn their keep by providing a top-notch service efficiently, even if it comes at a slightly higher price. In the end, the business owner should benefit from having a highly capable part-time team member.
A common misconception among small businesses is that they need a full-time, in-house bookkeeper. While it’s true that many companies do require bookkeeping services, not all of them need a full-time staffer on site.
In the past, some small businesses would hire full-time in-house bookkeepers for peace of mind, even when they only had part-time needs. But as budgets became tighter and technology improved, they realized they could get the same or even better quality of bookkeeping at a lower cost. It’s all about finding the right balance between needs and resources for your business.
Benefits Of External Contractor
Choosing an external contractor over an in-house employee comes with a bunch of benefits you might not have thought about. Of course, the obvious ones include not having to pay a regular salary or worry about vacation and sick leave.
But here’s something else to ponder: it’s often easier to part ways with a contractor than an employee. When you’ve got long-term employees, there can be emotional ties that make it tough to make the right call when it’s time to let them go.
With a contractor, there may still be some emotional attachment, but it’s usually not as strong as with an internal employee you see every day. Plus, you won’t have to stress about dealing with things like unemployment insurance claims, which can be a headache when you have employees.
Outsourced bookkeeping services offer a bunch of perks you might not have considered. If you’re curious to learn more and figure out what’s best for your business, why not schedule a free consultation with Golden Leaf Professional Consultants today? We’d love to chat!
